Robinhood removes trade restrictions at GameStop and AMC

Robinhood restrictions worsen Wall Street scandal 2:59

New York (CNN Business) -

Robinhood lifted commercial limits on GameStop, AMC and other Reddit favorites on Friday, easing restrictions that engulfed the free commercial app in controversy last week.

"There are currently no time limits for increasing your positions," Robinhood said in a blog post.

Robinhood outraged customers and lawmakers last week by temporarily suspending purchases of GameStop, AMC, BlackBerry and other stocks backed by an army of merchants on Reddit.

The restrictions triggered calls to boycott online brokerage and launched investigations in Congress.

Robinhood has gradually eased trading restrictions over the past week, increasing the number of shares users can buy on Reddit.

The startup blamed the temporary purchase ban on growing market volatility, dramatically raising its clearing house deposit requirements.

Robinhood repeatedly denied that he was acting at the behest of hedge funds affected by the

GameStop

rally

.

The business app turned to investors to quickly raise $ 3.4 billion, surpassing its total fundraising in the company's history up to that point.

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• Robinhood receives a $ 1 billion infusion, indicating a cash shortage

Robinhood, the app at the center of the GameStop craze 1:17

GameStop and Robinhood

After plummeting more than 83% so far this week, GameStop shares rose 8% during pre-market trading on Friday.

AMC was up 5%, recouping some of its heavy losses this week.

In a Twitter thread Thursday, Robinhood CEO Vlad Tenev acknowledged the challenges the

fast-growing

startup

faces

.

"Transforming an industry from within requires determination, hard work, investment and a laser focus on the people we want to serve," said Tenev.

"From time to time there are deficiencies along the way."

U.S. Treasury Secretary Janet Yellen convened regulators from the Securities and Exchange Commission (SEC), the Federal Reserve, and other agencies Thursday to discuss market volatility driven by Reddit.

Robinhood restrictions worsen Wall Street scandal 2:59

"Regulators believe that the core infrastructure was resilient during high volatility and high trading volume, and they agree on the importance of the SEC releasing a timely study of events," the Treasury Department said in a statement. , Thursday.

The Treasury said the SEC and the Commodity Futures Trading Commission are reviewing "whether business practices are consistent with investor protection and fair and efficient markets."

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